Hi All,

We may be selling our home in Houston; and after talking to our realtor about what upgrades she recommends (new granite countertops to replace formica + [possibly] a new dual A/C system) I wanted to see what the resident experts here thought.

I know the new countertops are a good investment. We are going with Level 1 Granite, and getting 88 SQFT installed with all the sinks (undermount) etc. for about $5,200 USD.

However, for the A/C system - I think we still have the original unit(s) to the house (1982). The previous owner kept them running well, and we haven't really had any issues with it until this summer (of course). I just replaced the attic furnace blower motor on the squirrel cage fan there, because the motor finally quit spinning and the bearings were seizing up (cost me $100 and 3 hours of my time, but it was really easy).

Anyhow, the system is working now, but it's 36 years old (almost as old as me). We KNOW this will be a negotiating point with any future potential buyers. Our realtor says similar houses in our neighborhood with NEW A/C units are selling for $5-7 /SQFT higher. For my home that would mean a $15-22K increase. So the thinking is, before the customer negotiates the A/C and tries to get $10-15K from me off the list price by demanding a specific brand or something, we could install a base model beforehand and recoup the cost in the list price of the house.

What are your thoughts on this? What is the typical price to install a new 3-ton (up) and 4-ton (down) system? This would include running partial new ductwork - i.e. cutting out 70% of the old rigid lines and replacing it with newer style flexible ducting.

I think if we can keep the new unit installation under $12K we will make a profit on the upgrade and take away a bargaining chip from any potential buyer.

I would appreciate any feedback, and if I need to provide more information I can. Again, since we are looking to sell, we would just be putting in the basic package (from Goodson, or similar - not a Train or Root A/C).

Thanks in Advance!

I'd wait. I can't see that big of an increase in sales price just because you put "new A/C" in the listing. If you're willing to pay for it anyway, it would better serve you to offer that big ticket item to the buyer after the inspection. Since it's functioning, I'd only offer him half the price of the install. Make him feel like he got a lot.

I wouldn't bother if it's still working well. Focus on the shiny bits but don't spend a ton. Buyers love shiny things.
(counters, appliances, fixtures)

Perhaps be prepared to replace the HVAC if it becomes a sticking point during negotiation, but I'd wait. You might be able to get by with just the obligatory crappy home warranty.

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Our realtor says similar houses in our neighborhood with NEW A/C units are selling for $5-7 /SQFT higher. For my home that would mean a $15-22K increase.

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The price increase is likely do to something else, or combo of other things. I have NEVER been able to attribute a price increase to something singular like an AC unit. A pool, yeah, but not HVAC. More than likely those homes had other upgrades as well.

I can't see how you would recoup cost on ductwork or anything fancier than the minimum-mandated efficiency system. If the buyer's inspector is as mediocre is mine was, all he will look at are the outside condensers and call them good. If it were my case I would let it ride and anticipate having to concede part of a replacement (only because of age and the R22 phase-out) or home warranty.

OP: Your wife is still hot. You should probably get the AC fixed.

they'll need a master detective to figure out it's an old ass AC

The A/C Tech a few months back said the evaporator coils were older than he was... he looked to be about 33 or so

Do you really make your money back on granite countertops?

What are the energy bills like, and how many square feet? Sold a house with a unit from the 70's about ten years ago. Drove by it the other day and still has the same unit. Summer bills were 200ish when we owned it. I don't buy what your realtor is selling on the hvac. Should not make a difference on the appraisal. The granite is not a terrible idea and should help it move much quicker, but you might not get recoup the entire cost.

Thanks all, we have decided to reconsider based on the overwhelming advice here... at least we will get a much better understanding before moving forward on anything.

I do like the logic of only conceding if they ask about it and then only conceding half...

That evil genius!

gig em 02 said:

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Do you really make your money back on granite countertops?

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It depends, but I could see it working if you consider the possible additional month that the place might be on the market for. If you forget about that and look only at the cost of granite vs. change in sale price probably not.

Old HVAC, hardly anyone would notice that until they're at the inspection phase I'd imagine. Unless they're weird like me and make a note of that so they can go back and evaluate houses they've looked at when it's time to make a choice.

The Fife said:

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gig em 02 said:

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Do you really make your money back on granite countertops?

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It depends, but I could see it working if you consider the possible additional month that the place might be on the market for. If you forget about that and look only at the cost of granite vs. change in sale price probably not.

Old HVAC, hardly anyone would notice that until they're at the inspection phase I'd imagine. Unless they're weird like me and make a note of that so they can go back and evaluate houses they've looked at when it's time to make a choice.

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Yeah, I had about a 30 column spreadsheet (username checks out) to rank the Top-10 houses we found in our budget based on location, house amenities, schools, etc...

We are definitely doing the kitchen and master bathroom countertops; Kitchen is old Formica and our bathroom counters are the only thing we haven't updated in the bathroom so they stick out (think molded "shell" sinks) and we want to move fast when it goes onto market.

1) No on new HVAC (scrub around all diffusers, though).
2) Oh hell yes on the granite. Formica anywhere outside a laundry room is kryptonite these days. Your (Buyer)mind immediately goes to "I wonder what else...that I CAN'T see...."...easy call. Never mind the payback issue, think of all the potential buyers who redlined it largely sight unseen!
JMO.

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Never mind the payback issue, think of all the potential buyers who redlined it largely sight unseen!

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Especially the 20-something professional dog walkers and free-lance baristas who have a budget of $650K. Can't afford to offend that well-heeled crowd.

Side question: Do you find that appraisers generally low-ball home values to protect loan risk? Or do they try to give the best possible fair value of the home taking into consideration comps, known defects, etc.?

In my experience, they don't "typically" give much consideration to the quality of updates. In other words, for most appraisals I've seen, it doesn't matter if the owner put $20K into the kitchen or $50K, they're not going to make adjustments.

Diggity said:

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In my experience, they don't "typically" give much consideration to the quality of updates. In other words, for most appraisals I've seen, it doesn't matter if the owner put $20K into the kitchen or $50K, they're not going to make adjustments.

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I am asking from a buyers perspective on this one - for the house we may move to (should have clarified).

And do appraisers have an agenda like a realtor? For example, not putting a loan company at risk for overlending on the true value of a house? or do they simply try to estimate the best value of a home? Or rae they trying to maximize market value (like a sellers realtor would) or minimize market value (like a buyers realtor would)?

In this scenario, I see the appraiser acting as a kind of arbiter or intermediary?

In this instance I want to know if I might be overpaying for a home based on its true value, not the sellers market value or the property tax HCAD market value, etc.

Thanks

Diggity said:

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They're going to use the area comps and adjust as deemed necessary. They don't have any incentive to appraise a property high or low. Most appraisers will get to the value if they have comps to justify it.

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Can they be fed information about the house that they may not know?

-Old Roof (19+ years)
-Broken A/C - Limping along
-Old Septic system has to be updated before sell to meet code
-Previous owners were smokers / lingering odor
-updates needed throughout
-Flood history (even if unclaimed on insurance), etc.?

by who? The sellers aren't going to be giving the appraiser information to damage the sale.

The buyer won't be in contact with them.

Diggity said:

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by who? The sellers aren't going to be giving the appraiser information to damage the sale.

The buyer won't be in contact with them.

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PM'd

94chem said:

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Never mind the payback issue, think of all the potential buyers who redlined it largely sight unseen!

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Especially the 20-something professional dog walkers and free-lance baristas who have a budget of $650K. Can't afford to offend that well-heeled crowd.

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Tell us more about them. Not in my orbit. Curious.

88jrt06 said:

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94chem said:

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Never mind the payback issue, think of all the potential buyers who redlined it largely sight unseen!

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Especially the 20-something professional dog walkers and free-lance baristas who have a budget of $650K. Can't afford to offend that well-heeled crowd.

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Tell us more about them. Not in my orbit. Curious.

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Do you even Househunters?

Reality TV about home buying? Kidding?
No. Big in your life?